The award winning, rights owning TV production company

1. The award winning, rights owning TV production company

2. Presenters • Eileen Gallagher – Managing Director • Jonathon Kemp – Finance Director

3. Agenda • Independent TV marketplace • Shed’s unique business model • Financial model • Strategy for Growth Appendices • Listed comparable companies • Comparable historic transactions • Production synopsis • Production status • Ratings analysis

4. The proposition • Unique independent TV production company • Sustainable, profitable financial model • Proven, commercially driven management team • Strong product brands that transfer off screen • Transformational changes in content production market • Outstanding growth prospects A unique, profitable indie in a transforming sector

5. The placing • AIM flotation with market capitalisation of - 2004 EBIT multiple of xx x – xx x - Represents a xx% discount to sector average - 2005 EBIT multiple of xx x – xx x (based on Bridgewell forecasts) - Represents a xx% discount to section average • Sale of shares by founders to raise £13 million • xxxxx shares in issue with 32% free float

6. Shed’s core talent Formed August 1998 by four of the TV industry’s most respected creative and business talents: Eileen Gallagher MD of LWT; Deputy Director of Broadcasting, Granada; Director of Broadcasting, Scottish TV; MD of production, Ginger TV; Non-exec Director, Gullane Entertainment; Chair of PACT - leading successful campaign on Terms of Trade under The Communications Act Brian Park Producer, Coronation Street, Prime Suspect, True Love, Granada Head of Entertainment – Stars In Their Eyes, You’ve Been Framed. Exec producer, Footballers’ Wives, Bad Girls, Bombshell Ann McManus Story and Script Editor at Coronation Street, Family Affairs, High Road, creator/writer Footballers’ Wives,Bad Girls and Bombshell Maureen Chadwick Script writer – Coronation Street, EastEnders, Spring Hill,Angels. Screenplay writer: BBC’s Screen One, creator/writer Footballers’ Wives, Bad Girls and Bombshell Core creative talent committed to the company and tied in by ownership

7. Independent TV marketplace Significant changes in the Independent production market: • New Terms of Trade – producers better able to retain their rights • BBC and Channel 4 deals now similar to ITV • Shed market now much larger – see pie chart, right • Change in nature of demand from broadcaster • Pay for valuable content • No longer cost plus model • Indies with product with valuable rights for other markets will benefit most • Quota changes at the BBC on horizon Broadcasters’ commissioned hours from Indies Truly transformational changes to production market

8. Shed’s differentiation

9. Making production profitable • Sustainable and highly profitable TV content production business • Focus on large-scale, long-running, long-life content (principally, drama) • Retain all IP rights • Build and own content library • Exploit through multiple revenue streams • Keep overheads low and tightly control production costs • provides broadcasters top quality content at excellent values • achieves industry-leading profit margins for Shed

10. Shed production hours

11. Turnover and profit Note: Operating profit stated before exceptional items and depreciation

12. Financial track record [Financial grid to be inserted, once numbers finalised] [Insert peer margin comparison]

13. Sustainable margins • Tight control of production costs • managing script and story process • margin enhanced by under-spend on budget • No reliance on individual screen talent • importance of ensemble drama • Low central overheads • Cash retained in business to fund working capital of productions • Broadcasters are prepared to pay • Shed delivers better value on screen than (any of) its competitors [verifiable?] • Value pricing model • replaces traditional cost plus model - “bang for a buck” • works when strong demand for content • Hub and spurs model ring-fences cost exposure

14. Additional revenue from rights • Predictable stable revenue from rights exploitation: • International sales of library and drama formats • DVD, video and book sales – UK and overseas • Valuable UK secondary market growing – cable, satellite, digital • Smoothes revenue profile • Improves visibility of revenue • Upsides not included in finance plan: • Brand extensions – Bad Girls The Musical • US market breakthrough • Major European format sales • ITV1 repeats

15. Outlook for 2005 • Bad Girls series 7 commissioned and in production • Footballers Wives series 4 complete and scheduled for Spring • Bombshell transmitting in February • The Fugitives transmitting in April on CiTV • New soap spin-off of Footballers’ Wives for ITV2 • Comedy doc series commissioned for ITV2 • New drama series Tainted – script commissioned for Channel 4 • BBC drama special, Dog Show – script commissioned • Channel 4 drama special, Kenneth Williams – script commissioned • Healthy development slate for new drama series for all broadcasters Total of 47 hours already committed for 2005

16. Shed’s reputation • Cost effective price for broadcasters • Attracting valuable young demographic (16-34 year olds) • Proven ability to sustain long running dramas • Proven ability to handle scale and big budgets • No failures • Attracting and keeping the best industry talent • Delivering consistently high rating drama Broadcasters are keen to work with Shed

17. Shed’s growth strategy • Strong organic growth • Extensive pipeline of committed commissions • Building on success and reputation • Change in terms of trade • BBC and Channel Four now attractive customers • Attracting key talent and teams from other producers • Shed is liked as an employer • Selective acquisitions of companies at right price • Targeting high value production genres: • Children’s • Entertainment • Comedy / factual • half hour soaps

18. Flotation rationale • Consolidation of independent market happening now • Need for currency to • Attract talent • Make selective acquisitions • AiM listing has key advantages over private equity funding • Impact of “transforming” changes in TV production market only now being understood • Raise profile with broadcasters

19. A unique opportunity • Leading independent TV production company • High profile range of strong brands in long-running drama • Consistently high-quality programming delivering attractive audiences • Talented “tied in” creative team • Robust financial model • All IP rights retained and exploited through multiple revenue streams • Efficient production model and tight cost control • High, sustainable profit margins • Long track record of profitability since inception • Proven, commercially driven management team • Transformational changes in production market • Outstanding growth prospects • Pipeline of committed commissions • BBC and Channel Four now attractive customers • Attracting industry’s best talent • Selective acquisitions • Expansion of genre offering e.g. kids and factual

20. Appendices • Listed comparable • Comparable transactions • Production synopsis • Production status • Ratings analysis